TikTok Strikes Deal to Create New U.S. Entity and Loosen App’s Ties to China

TikTok, the popular video-sharing app, has reached a deal to create a new U.S. entity in an effort to avoid a federal ban. The Chinese parent company, ByteDance, has agreed to allow a group of non-Chinese investors to establish an American version of TikTok, loosening the app's ties to China. This move comes in response to concerns raised by the U.S. government about the potential national security risks associated with TikTok's Chinese ownership. The new entity, which will be majority-owned by U.S. investors, is designed to address these concerns and maintain the app's operations in the United States. The details of the agreement are still being finalized, but it is expected to involve the creation of a new board of directors and the implementation of additional data security measures. The deal is subject to approval by the U.S. government and could be a significant step in resolving the ongoing tensions between TikTok and the Trump administration.